Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
4.-
Calculate the real or exact interest on:
(a) $37,000 for 75 days at 13%.
b) $65,000, at 11%, maturing on November 16, having signed the promissory note on July 16 of the same year.
c) $66,000 for 6 months at 9.5%.
Note:
The original exercise is in the image, it is in Spanish, but it is easy to understand.
Another note:
Please put the procedure explained, thank you very much for your attention bartleby expert!
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